SCOUT
TAX-FREE
MONEY MARKET
FUND
A no-load mutual fund
principally invested in
short-term municipal
securities seeking to provide
maximum income exempt
from federal income tax
consistent with safety of
principal and maintenance
of liquidity.
Quarterly Report
September 30, 1996
TO THE SHAREHOLDERS
Scout Tax-Free Money Market Fund earned 0.73% for the quarter ended September
30, 1996. The Fund's 7-day current yield on September 30, 1996 was 2.96%.
Money market funds are neither insured nor guaranteed by the U.S. Government.
There is no assurance that the fund will maintain a stable net asset value of
one dollar per share. Income from the fund may be subject to the federal
Alternative Minimum Tax as well as state and local taxes.
It has been difficult to interpret the ongoing stream of government economic
reports about the Federal Reserve's next move on interest rates. It appears
unlikely that the Fed will tighten at the next Federal Open Market Committee
(FOMC) meeting scheduled in November 1996. In fact, some economists are
speculating the possibility of the Fed easing interest rates in the first half
of 1997. Most recently, the bond market rallied and the long bond's yield fell
to 6.72%, its lowest yield in two months. This rally was in reaction to better
than expected Economic Cost Index reports. Barring any disappointing economic
reports in the near future, long bond yields may fall to a lower trading
range. Meanwhile, short term rates have been remarkably stable throughout
third quarter, and will probably remain stable throughout 1996.
We appreciate your continued interest in Scout Tax-Free Money Market Fund,
Inc.
Sincerely,
/s/William A. Faust
William A. Faust
UMB Investment Advisors
Shares of the Scout Funds are not deposits or obligations of, nor guaranteed
by, UMB Bank, n.a. or any other banking institution, nor are they insured by
the Federal Deposit Insurance Corporation or any other applicable deposit
insurance. These shares involve investment risks, including the possible loss
of the principal amount invested.
FINANCIAL STATEMENTS
Statement of Net Assets
September 30, 1996
Principal Market
State Amount Description Value
ALASKA
500,000 Alaska State Housing Finance Corp.,
Series C,
Var. Rate, due June 1, 2026 500,000
ARIZONA
2,500,000 Maricopa County Arizona
(Southern California Edison ),
Tax-Exempt Commercial Paper,
3.50%, due November 7, 1996 2,500,000
2,000,000 Maricopa County Arizonia
(Southern California Edison ),
Tax-Exempt Commercial Paper,
3.50%, due October 15, 1996 2,000,000
1,600,000 Mesa Arizona, Municipal Development
Corp., Series A,
Tax-Exempt Commercial Paper,
3.50%, due October 9, 1996 1,600,000
3,000,000 Salt River Project Agricultural
Improvement & Power District,
Arizonia Tax-Exempt Commercial Paper,
3.50%, due November 5, 1996 3,000,000
FLORIDA
3,000,000 Jacksonville Florida,
Tax-Exempt Commercial Paper,
3.40%, due October 15, 1996 3,000,000
2,000,000 Jacksonville Florida,
Tax-Exempt Commercial Paper,
3.45%, due November 15, 1996 2,000,000
1,000,000 Jacksonville Florida,
Tax-Exempt Commercial Paper,
3.45%, due October 7, 1996 1,000,000
1,000,000 Jacksonville Florida,
Tax-Exempt Commercial Paper,
3.50%, due October 2, 1996 1,000,000
1,000,000 Jacksonville Florida,
Tax-Exempt Commercial Paper,
3.50%, due October 23, 1996 1,000,000
1,200,000 Palm Beach County Florida Housing
Finance Auth.
(Cotton Bay Apartments) Series D,
Var. Rate, due November 1, 2007 1,200,000
2,400,000 St. Lucie County Florida,
Pollution Control Revenue,
Series 94A (Florida Power & Light),
Tax Exempt Commercial Paper,
3.50%, due November 5, 1996 2,400,000
GEORGIA
1,800,000 Burke County Georgia, Pollution
Control Rev. (Georgia Power Co.),
Var. Rate, due July 1, 2024 1,800,000
3,000,000 Floyd County Georgia, Pollution
Control Rev. (Georgia Power Co.),
Var. Rate, due September 1, 2026 3,000,000
ILLINOIS
1,000,000 Illinois Educational Facilities
Auth. Rev. (National Louis
University),
Var. Rate, May 1, 2022 1,000,000
KANSAS
900,000 Burlington Kansas, Pollution
Control Rev. (KCP&L),
Tax-Exempt Commercial Paper,
3.35%, due October 10, 1996 900,000
3,000,000 Salina Kansas Municipal Temp.
Note, Series 1,
3.50%, due March 1, 1997 3,000,022
900,000 Wichita Kansas General Obligation,
6.75%, due December 1, 1996 904,507
MARYLAND
2,764,000 Maryland Health Education Finance
Auth. (John Hopkins),
Tax-Exempt Commercial Paper,
3.55%, due October 2, 1996 2,764,000
4,616,000 Maryland Health Education Finance
Auth. (John Hopkins),
Tax-Exempt Commercial Paper,
3.60%, due November 4, 1996 4,616,000
MASSACHUSETTS
1,600,000 Massachusetts Bay Transit Auth.,
Series C,
Tax-Exempt Commercial Paper,
3.45%, due October 22, 1996 1,600,000
1,000,000 Massachusetts Bay Transit Auth.,
Tax-Exempt Commercial Paper,
3.50%, due November 7, 1996 1,000,000
1,000,000 Massachusetts State, Series B,
Var. Rate, due December 1, 1997 1,000,000
MINNESOTA
1,500,000 Rochester Minnesota (Mayo Clinic),
Tax-Exempt Commercial Paper,
3.35%, due October 9, 1996 1,500,000
1,550,000 Rochester Minnesota (Mayo Clinic),
Series C,
Tax-Exempt Commercial Paper,
3.55%, due November 4, 1996 1,550,000
MISSOURI
1,150,000 Columbia Missouri, Series A,
Var. Rate, due June 1, 2008 1,150,000
2,000,000 Missouri Environment Improvement Rev.,
Tax-Exempt Commercial Paper,
3.45%, due October 3, 1996 2,000,000
MISSOURI (Continued)
2,600,000 Missouri Environment Improvement Rev.,
Tax-Exempt Commercial Paper,
3.55%, due October 30, 1996 2,600,000
200,000 Missouri State Health & Education Auth.
(Sisters Of Saint Mary), Series C,
Var. Rate, due June 1, 2022 200,000
NORTH CAROLINA
2,700,000 Winston Salem North Carolina Water
& Sewer System Rev.,
Var. Rate, due June 1, 2014 2,700,000
SOUTH CAROLINA
1,300,000 York County South Carolina
(Duke Power),
Tax-Exempt Commercial Paper,
3.50%, due October 16, 1996 1,300,000
1,500,000 York County South Carolina
(Duke Power),
Tax-Exempt Commercial Paper,
3.50%, due October 17, 1996 1,500,000
2,000,000 York County South Carolina
(Duke Power),
Tax-Exempt Commercial Paper,
3.50%, due October 21, 1996 2,000,000
1,200,000 York County South Carolina
(Duke Power),
Tax-Exempt Commercial Paper,
3.50%, due October 9, 1996 1,200,000
TEXAS
1,500,000 Austin Texas Utility Revenue,
Tax-Exempt Commercial Paper,
3.55%, due October 3, 1996 1,500,000
1,400,000 Dallas Texas G.O.,
Tax-Exempt Commercial Paper,
3.45%, due October 7, 1996 1,400,000
500,000 Grapevine Texas Industrial Dev. Auth.
(American Airlines), Series A-1,
Var. Rate, due December 1, 2024 500,000
400,000 Grapevine Texas Industrial Dev.
Auth. (American Airlines), Series A-2,
Var. Rate, due December 1, 2024 400,000
800,000 Grapevine Texas Industrial Dev.
Auth. (American Airlines), Series A-3,
Var. Rate, due December 1, 2024 800,000
1,600,000 Grapevine Texas Industrial Dev.
Auth. (American Airlines), Series A-4,
Var. Rate, due December 1, 2024 1,600,000
200,000 Grapevine Texas Industrial Dev.
Auth. (American Airlines), Series B-1,
Var. Rate, due December 1, 2024 200,000
TEXAS (Continued)
800,000 Grapevine Texas Industrial Dev.
Auth. (American Airlines), Series B-2,
Var. Rate, due December 1, 2024 800,000
1,700,000 Lower Nechese Valley Texas Auth.,
Pollution Control Rev.
(River Treatment Industrial Dev. Corp.),
Var. Rate, due February 1, 2004 1,700,000
1,000,000 Texas A&M University Board of Regents,
Series B, Tax-Exempt Commercial Paper,
3.50%, due October 10, 1996 1,000,000
2,000,000 Texas A&M University Board of
Regents, Series B,
Tax-Exempt Commercial Paper,
3.55%, due October 2, 1996 2,000,000
1,000,000 Texas A&M University Board of
Regents, Series B,
Tax-Exempt Commercial Paper,
3.60%, due October 10, 1996 1,000,000
1,800,000 University of Texas Permanent Fund,
Tax-Exempt Commercial Paper,
3.50%, due October 4, 1996 1,800,000
1,025,000 University of Texas Permanent Fund,
Tax-Exempt Commercial Paper,
3.60%, due October 1, 1996 1,025,000
VERMONT
3,000,000 Vermont State, Series I,
Tax Exempt Commercial Paper,
3.35%, due October 7, 1996 3,000,000
1,000,000 Vermont State, Series I,
Tax Exempt Commercial Paper,
3.45%, due October 7, 1996 1,000,000
2,000,000 Vermont State, Series I,
Tax Exempt Commercial Paper,
3.50%, due November 19, 1996 2,000,000
WASHINGTON
1,000,000 Seattle Municipal Power & Light,
Tax-Exempt Commercial Paper,
3.55%, due October 2, 1996 1,000,000
6,250,000 Seattle Municipal Power & Light,
Tax-Exempt Commercial Paper,
3.625%, due January 7, 1997 6,250,000
2,000,000 Washington State, Series VR-96A,
Var. Rate, due June 1, 2020 2,000,000
WISCONSIN
1,400,000 Oak Creek Wisconsin, Pollution
Control Rev. (Wisconsin Electric Power Co.),
Var. Rate, due August 1, 2016 1,400,000
1,500,000 Sheboygan Wisconsin, Pollution
Control Rev. (Wisconsin Electric Power Co.),
Var. Rate, due September 1, 2015 1,500,000
1,600,000 Sheboygan Wisconsin, Pollution
Control Rev. (Wisconsin Power & Light Co.),
Var. Rate, due August 1, 2014 1,600,000
TOTAL INVESTMENTS - 100.59% $ 95,959,529
Other assets less liabilities - (0.59)% (560,524)
TOTAL NET ASSETS - 100.00%
(equivalent to $1.00 per share;
1,000,000,000 shares of $0.01 par value
capital shares authorized;
95,496,295.69 shares outstanding) $ 95,399,005
Line (Line of Credit)
LOC (Letter of Credit)
SBPA (Stand by Purchase Agreement)
Valuation of securities is on the basis of amortized cost, which approximates
market value.
This report has been prepared for the information of the Shareholders of Scout
Tax-Free Money Market Fund, Inc., and is not to be construed as an offering of
the shares of the Fund. Shares of this Fund and of the other Scout Funds are
offered only by the Prospectus, a copy of which may be obtained from Jones &
Babson, Inc.
BOARD OF DIRECTORS
AND OFFICERS
Board of Directors
Larry D. Armel
William E. Hoffman, D.D.S.
Eric T. Jager
Stephen F. Rose
Stuart Wien
Officers
Larry D. Armel, President
P. Bradley Adams, Vice President & Treasurer
Michael A. Brummel, Vice President
Martin A. Cramer, Vice President & Secretary
John G. Dyer, Vice President
Manager and Investment Counsel
UMB Bank, n.a., Kansas City, Missouri
Legal Counsel
Stradley, Ronon, Stevens & Young,
Philadelphia, Pennsylvania
John G. Dyer, Kansas City, Missouri
Custodian
UMB Bank, n.a., Kansas City, Missouri
JONES & BABSON
MUTUAL FUNDS
P.O. Box 410498
Kansas City, MO 64141-0498
TOLL-FREE 1-800-996-2862
